Investment Strategy - Selling stocks is acceptable to avoid potential losses and capitalize on new opportunities [1] - Selling is appropriate if a company's fundamentals deteriorate or growth catalysts fail [2] - Selling is also acceptable if a better opportunity arises or life circumstances change [3] Risk Management - Confidence in the investment process is crucial for disciplined investing, especially during market volatility [3] - Building a firm foundation of knowledge is recommended over blind faith [4] - Investors should invest within their circle of competence to make informed decisions [4] - Staying within one's circle of competence allows for learning from mistakes and refining strategy [5] Long-Term Investing - Successful long-term investors prioritize knowledge and avoid short-term thinking and emotions [6] - Continuously pursuing knowledge expands the circle of competence over time [5]

Investment Analysis Framework - The industry suggests using a quick analytical litmus test to determine if a company warrants investment consideration [1] - Fundamental strength analysis can be efficiently conducted using the GF score [1] - Relative standing against competitors and margin maintenance ability can be assessed via the moat score on Guru Focus [2] - Industry overview tools on Guru Focus can help determine if a business operates in a supportive industry for growth [2][3] - Stocks that meet all three criteria warrant further investigation [3] Further Investigation - Major financial statements reported by publicly traded companies are important for deeper analysis [4] - Key financial metrics and ratios are used to analyze financial reports [4] - Common traps that can trip up investors should be avoided [4] - Developing a deeper level of understanding is crucial for long-term investors [4]